Distinguish express warranties from implied warranties in the sale of goods.

Express warranties arise from seller's statements or descriptions; implied warranties arise by operation of law, including merchantability and fitness for a particular purpose.

In the sale of goods, warranties are guarantees about quality or suitability, and they come from two different sources. Express warranties are created by what the seller actually says or describes—affirmations of fact, promises, descriptions, or a sample or model—that become part of the deal. If the seller states the goods are "brand new," "made of steel," or that a particular laptop has “a one-year battery life,” those statements can form express warranties.

Implied warranties, by contrast, arise by operation of law to protect buyers when there isn’t an explicit statement from the seller. The two main ones are that the goods are of merchantable quality (fit for the ordinary purposes for which such goods are used) and, if the seller knows the buyer has a specific use for the goods and the buyer relies on the seller’s expertise, fitness for a particular purpose (the goods must be suitable for that particular use).

So the best description is that express warranties come from the seller’s statements or descriptions, while implied warranties come from the law, including merchantability and fitness for a particular purpose. Common misunderstandings, like needing privity for express warranties, or that warranties must be written, or that disclaimers always destroy warranties, don’t fit how these warranties actually operate.

Express warranties require privity; implied warranties do not.

Express warranties are only written; implied warranties are only oral.

Express warranties are always disclaimed; implied warranties cannot be disclaimed.

Want more questions?

All options are one-time payments.

$12.50

30 day premium pass

All the basics to get you started

  • Ad-free experience
  • View your previous attempt history
  • Mobile app access
  • In-depth explanations
  • 30 day premium pass access
$30.00 $87.50 usd

6 month DELUXE pass (most popular)

Everything with the 30 day premium pass FOR 6 MONTHS! & the ultimate digital PDF study guide (BONUS)

  • Everything included in the premium pass
  • $87.50 usd value for $30.00! You save $57.50!
  • + Access to the ultimate digital PDF study guide
  • + 6 months of premium pass access
  • + Priority support
$12.50 $18.99

Ultimate digital PDF study guide

For those that prefer a more traditional form of learning

  • Available for instant download
  • Available offline
  • Hundreds of practice multiple choice questions
  • Comprehensive content
  • Detailed explanations
Image Description
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy